The President of the African Development Bank Group, Dr. Akinwumi A. Adesina, has called for a radical shift in Africa’s economic structure from raw material exports to agro-industrialization as the key to unlocking prosperity on the continent.
Speaking at the 14th Convocation Lecture of the National Open University of Nigeria (NOUN), Dr. Adesina warned that Africa’s continued reliance on the export of unprocessed agricultural commodities is a direct pathway to poverty.
“The door to poverty is the export of raw materials of any kind,” he declared. “The highway to wealth is value addition to everything we produce.”
He lamented that although Africa accounts for the bulk of global cocoa production, the continent receives only 2% of the $120 billion global chocolate market, which is dominated by countries that process and add value to cocoa.
According to him, this is a reflection of how Africa’s abundant resources are underutilized and undervalued in the global economy.
Using the examples of Chile, China, and Indonesia, Dr. Adesina highlighted how other regions have successfully integrated into global value chains by adding value to their resources particularly critical minerals, and urged Africa to learn from these models.
He called for the strengthening of Africa’s continental food value chain through local production, local procurement, and increased intra-African trade in processed agricultural goods.
“Produce local, buy local, and trade more locally,” he said, stressing the need for investment in agro-processing, rural infrastructure, and industrialization to boost the value of Africa’s agricultural output.
Dr. Adesina further emphasized the importance of structured investments and the rule of law in unlocking the full potential of Africa’s natural resources, including oil, gas, minerals, metals, rare herbs, and agricultural produce.
Turning attention to climate change, he revealed that nine out of the ten most vulnerable countries to climate change are in Africa, costing the continent between $7 billion and $15 billion annually. Yet, Africa receives just 3% of global climate finance.
To address this, he highlighted the African Development Bank’s $25 billion African Adaptation Acceleration Program, the largest climate adaptation program in the world as a major step toward protecting the continent’s agricultural systems and livelihoods from climate shocks.
“Natural capital must be valued and protected,” he stated, reaffirming the African Development Bank’s commitment to building climate resilience across the continent.
As his tenure at the bank draws to a close, Dr. Adesina expressed pride in Africa’s increasing representation on the global stage, including South Africa’s G20 presidency and the African Union’s G20 membership, adding that Africa must now take its place, not wait to be given one.
